Five John Lewis stores – including the Reading branch – saw sales fall by more than 20 per cent in a weekly period as the department store chain faced up to heavy discounting by rivals.

The group’s weekly trading update revealed a 23 per cent drop at Nottingham, while outlets at Peterborough, Reading, Bristol’s Cribbs Causeway and Peter Jones in London were also down by more than a fifth on a year earlier.

John Lewis disclosed on Sunday, November 23, that sales across the division were down by more than 13 per cent in the week to Saturday, November 22.

The period saw rivals Marks & Spencer and Debenhams hold discount days in a bid to drive footfall in the run up to Christmas.

Despite the increased competition, John Lewis merchandise director Jill Little said the chain held its own during the week, particularly in fashion after matching the price cuts on branded lines.

She said: “A week of high profile competitor reductions give an indication that most retailers are finding themselves in tough times.

"Throughout this, we can remain confident in the honest pricing strategy we have always delivered for our customers.”

Earlier this year John Lewis staff, including those in Reading, celebrated the award of one fifth of their salary as an annual bonus.

It followed a strong year for the JL Partnership, with profits for the year ending January 26 up £59.7 million to £379.8 million.